42 million dollars in Short orders are at risk—can HBAR execute a short squeeze?

The price of Hedera (HBAR) is in the process of bouncing back after a recent significant fall. Although there have been some signs of a slight recovery, this altcoin has not yet been able to create sustainable upward momentum, causing market sentiment to remain cautious.

One notable issue is the increasing liquidation pressure on investors holding short positions. Data from the liquidation map shows that if HBAR surpasses the resistance level of $0.276, approximately $42 million in short contracts are at risk of being liquidated. This is a key price zone, and the large volume of sell orders here reflects the lack of optimism among the majority of investors. However, if the price breaks through this level, a "short squeeze" could occur, providing strong support for the bullish trend.

HBAR liquidation map | Source: CoinglassNotably, the correlation between HBAR and Bitcoin has surged from 0.19 to 0.71 in just 5 days, indicating that HBAR is increasingly reacting strongly to BTC's volatility. If Bitcoin successfully surpasses the $115,000 mark and maintains support, HBAR is likely to continue bouncing back.

The correlation of HBAR with Bitcoin | Source: TradingViewCurrently, HBAR is trading around $0.245 – down 12.6% from the resistance level of $0.276. Maintaining the support area of $0.241 will be a necessary condition for the price to head towards the resistance area and may bounce back the 21% loss recorded at the end of July.

HBAR Price Analysis | Source: TradingViewConversely, if this support level is lost and market sentiment remains negative, the price may continue to fall to the next support area at $0.220, completely weakening the short-term bullish outlook.

Mr. Teacher